Attached files

file	filename
8-K - PRESS RELEASE FORM 8-K 07/19/2012 - TCF FINANCIAL CORP	PRESSRELEASE8K.htm

Exhibit 99.1

NEWS RELEASE

CONTACT: Jason Korstange

(952) 745-2755

www.tcfbank.com

FOR IMMEDIATE RELEASE

TCF FINANCIAL CORPORATION 200 Lake Street East, Wayzata, MN 55391-1693

TCF Reports Net Income of $31.5 Million, or 20 Cents Per Share

SECOND QUARTER HIGHLIGHTS

- Net interest margin of 4.86 percent, up 84 bps from June 30, 2011

- Pre-tax pre-provision profit of $108.1 million, up 13.6% from June 30, 2011

- Total delinquent loans declined $23.7 million from March 31, 2012

- Total loans and leases of $15.2 billion, increase of 4.1 percent from $14.6 billion at June 30, 2011

- Completed $172.5 million preferred stock offering

- Issued $110 million of subordinated notes

- Acquired $778 million of deposits from Prudential Bank & Trust, FSB

- Announced common and preferred stock dividend payments, payable August 31, 2012 and September 4, 2012, respectively

Summary of Financial Results																			Table 1
($ in thousands, except per-share data)										Percent Change
	2Q			1Q				2Q	2Q12 vs			2Q12 vs		YTD				YTD	Percent
	2012			2012 ⁽³⁾				2011		1Q12		2Q11		2012				2011	Change
Net income (loss)	$	31,531		$	(282,894)		$	30,424		N.M.	%	3.6	%	$	(251,363)		$	60,696		N.M.	%
Pre-tax pre-provision profit⁽¹⁾		108,118			70,578			95,201		53.2		13.6			178,696			190,508		(6.2)
Diluted earnings (loss) per common share		.20			(1.78)			.19		N.M.		5.3			(1.58)			.40		N.M.

Financial Ratios⁽²⁾
Return on average assets		.76	%		(5.96)	%		.68	%						(2.71)	%		.68	%
Return on average common equity		8.13			(63.38)			7.00							(29.84)			7.46
Net interest margin		4.86			4.14			4.02							4.49			4.04
Net charge-offs as a percentage of
average loans and leases		1.18			1.06			1.19							1.12			1.35

N.M. = Not meaningful.
(1) Pre-tax pre-provision profit ("PTPP") is calculated as total revenues less non-interest expense. First quarter and year-to-date 2012 PTPP excludes the net loss of $473.8 million related to the balance sheet repositioning completed in the first quarter of 2012.
(2) Annualized.
(3) Includes a net, after-tax charge of $295.8 million, or $1.87 per share, related to repositioning certain investments and borrowings.

WAYZATA, MN, July 19, 2012 – TCF Financial Corporation (“TCF”) (NYSE: TCB) today reported net income for the second quarter of 2012 of $31.5 million, compared with net income of $30.4 million in the second quarter of 2011 and a net loss of $282.9 million for the first quarter of 2012. The net loss for the first quarter of 2012 included a net, after-tax charge of $295.8 million, or $1.87 per share, related to a balance sheet repositioning involving certain investments and borrowings. Diluted earnings per common share was 20 cents for the second quarter of 2012, compared with diluted earnings per common share of 19 cents in the second quarter of 2011 and diluted loss per common share of $1.78 in the first quarter of 2012.

TCF reported a net loss of $251.4 million for the first six months of 2012, compared with net income of $60.7 million for the same period in 2011. Diluted loss per common share for the first six months of 2012 was $1.58, compared with earnings per common share of 40 cents for the same period in 2011.

TCF declared a dividend on its 7.50 percent Series A Non-cumulative Perpetual Preferred Stock payable on September 4, 2012 to stockholders of record at the close of business on August 15, 2012. TCF also declared a quarterly cash dividend of 5 cents per common share payable on August 31, 2012 to stockholders of record at the close of business on August 15, 2012.

Chairman’s Statement

“We began the year by saying 2012 would be a ‘building and investing’ year for TCF, and at the half-way point, it has been just that,” said William A. Cooper, Chairman and Chief Executive Officer. “TCF has been proactive in preparing for the future through actions such as a balance sheet repositioning and disciplined asset growth in national lending businesses. TCF listened to what consumers want in a checking product and reintroduced TCF Free Checking to its customers during the quarter. TCF also bolstered its capital position during the quarter through preferred stock and subordinated debt offerings, while announcing the redemption of its trust preferred securities.

“The second quarter highlighted TCF’s earnings potential through a significant increase in net interest margin due to the full quarter impact of the balance sheet repositioning, as well as a change in trends in banking

-more-

fees partially due to our deposit product fee structures. Meanwhile, credit quality remains a challenge as we continue to work through problem credits. We are seeing some encouraging trends in consumer real estate delinquencies, a leading indicator of consumer credit for TCF, which have decreased for a second consecutive quarter.

“I am excited about the evolution that has taken place at TCF over the past year and the return to our roots with TCF Free Checking. Today, we are in a much better position for success than we were a year ago. As we continue to build on our recent investments, I am confident in our ability to improve future stockholder value.”

Revenue

Total Revenue																						Table 2
												Percent Change
				2Q			1Q			2Q		2Q12 vs		2Q12 vs			YTD			YTD		Percent
($ in thousands)				2012			2012			2011		1Q12		2Q11			2012			2011		Change
Net interest income			$	198,224		$	180,173		$	176,150		10.0	%	12.5	%	$	378,397		$	350,190		8.1	%
Fees and other revenue:
Fees and service charges				48,090			41,856			56,396		14.9		(14.7)			89,946			109,909		(18.2)
Card revenue				13,530			13,207			28,219		2.4		(52.1)			26,737			54,803		(51.2)
ATM revenue				6,276			6,199			7,091		1.2		(11.5)			12,475			13,796		(9.6)
	Total banking fees			67,896			61,262			91,706		10.8		(26.0)			129,158			178,508		(27.6)
Leasing and equipment finance				23,207			22,867			22,279		1.5		4.2			46,074			49,029		(6.0)
Gains on sales of auto loans				5,496			2,250			-		144.3		N.M.			7,746			-		N.M.
Other				3,168			2,355			384		34.5		N.M.			5,523			1,078		N.M.
	Total fees and other revenue			99,767			88,734			114,369		12.4		(12.8)			188,501			228,615		(17.5)
		Subtotal		297,991			268,907			290,519		10.8		2.6			566,898			578,805		(2.1)
Gains (losses) on securities, net				13,116			76,611			(227)		(82.9)		N.M.			89,727			(227)		N.M.
		Total revenue	$	311,107		$	345,518		$	290,292		(10.0)		7.2		$	656,625		$	578,578		13.5

Net interest margin⁽¹⁾				4.86	%		4.14	%		4.02	%						4.49	%		4.04	%
Fees and other revenue as
	a % of total revenue			32.07			25.68			39.40							28.71			39.51

N.M. = Not meaningful.
(1) Annualized.

Net Interest Income

· Net interest income for the second quarter of 2012 increased $22.1 million, or 12.5 percent, compared with the second quarter of 2011. The increase was primarily due to the balance sheet repositioning completed in the first quarter of 2012, which resulted in a $37.9 million reduction to the cost of borrowings, partially offset by a $13.9 million reduction of interest income on mortgage-backed

-more-

securities. Additionally, average balances of inventory finance loans and auto finance loans were higher, and the average cost of deposits was lower, during the second quarter of 2012 compared to the same period in 2011. Offsetting the increase in net interest income were lower yields on leasing and equipment finance loans and leases and consumer and commercial real estate loans as the portfolio rebalances to the current rate environment. Net interest income for the second quarter of 2012 increased $18.1 million, or 10 percent, compared with the first quarter of 2012. The increase in net interest income from the first quarter of 2012 was primarily due to the full quarter impact of the balance sheet repositioning, which resulted in a $28.6 million reduction to the cost of borrowings, partially offset by a $12.4 million reduction of interest income on mortgage-backed securities. Also offsetting the increase was reduced interest income on loans and leases, driven by lower yields on consumer and commercial loans, offset by higher average balances of inventory finance and auto finance loans.

· Net interest margin in the second quarter of 2012 was 4.86 percent, compared with 4.02 percent in the second quarter of 2011. This increase was primarily due to lower average cost of borrowings due to the effects of the balance sheet repositioning, which increased net interest margin by 92 basis points, as well as decreased rates on various deposit products and a positive mix shift to the higher yielding business lines including inventory finance and auto finance. These increases were partially offset by a decrease in yields in the consumer, commercial, and leasing and equipment finance portfolios as a result of the lower interest rate environment. Net interest margin increased by 72 basis points from 4.14 percent in the first quarter of 2012. This increase was primarily due to a lower average cost of borrowings due to the effects of the balance sheet repositioning, which increased net interest margin by 69 basis points, and growth in the inventory finance and auto finance portfolios. These increases were partially offset by decreased levels of higher yielding loans in the consumer portfolio as a result of the lower interest rate environment and increased balances in higher rate deposit accounts.

· At June 30, 2012, interest-bearing deposits held at the Federal Reserve and unencumbered securities were $1.1 billion, an increase of $395 million from the second quarter of 2011 and $46 million from the

-more-

first quarter of 2012.

Non-interest Income

· Banking fees and service charges in the second quarter of 2012 were $48.1 million, down $8.3 million, or 14.7 percent, from the second quarter of 2011 and up $6.2 million, or 14.9 percent, from the first quarter of 2012. The decrease in banking fees and revenues from the second quarter of 2011 was primarily due to checking account program changes that resulted in a reduced number of accounts. The increase from the first quarter of 2012 was primarily due to seasonality of checking account transactions and our deposit product fee structure changes.

· Card revenues were $13.5 million in the second quarter of 2012, a decrease of $14.7 million, or 52.1 percent, from the second quarter of 2011 and up $323 thousand, or 2.4 percent, from the first quarter of 2012. The decrease from the prior year is due to new debit card interchange regulations which took effect on October 1, 2011. The increase in card revenue from the first quarter of 2012 was primarily due to seasonal increases in transaction volume offset by a lower number of active checking accounts.

· TCF sold $144.1 million of auto loans and recognized $5.5 million in associated gains during the second quarter of 2012, compared with the sale of $72 million of auto loans and recognition of $2.3 million in associated gains during the first quarter of 2012.

· During the second quarter of 2012, TCF recognized a $13.1 million gain on sales of securities on the sale of its Visa^® Class B stock.

-more-

Loans and Leases

Period-End and Average Loans and Leases																Table 3
								Percent Change
($ in thousands)			2Q		1Q		2Q	2Q12 vs		2Q12 vs			YTD		YTD	Percent
			2012		2012		2011	1Q12		2Q11			2012		2011	Change
Period-End:
Consumer real estate		$	6,811,784	$	6,815,909	$	7,018,240	(.1)	%	(2.9)	%
Commercial			3,523,070		3,467,089		3,614,395	1.6		(2.5)
Leasing and equipment finance			3,151,105		3,118,755		3,055,878	1.0		3.1
Inventory finance			1,457,263		1,637,958		905,922	(11.0)		60.9
Auto finance			262,188		139,047		-	88.6		N.M.
Other			29,094		29,178		37,510	(.3)		(22.4)
	Total	$	15,234,504	$	15,207,936	$	14,631,945	.2		4.1

Average:
Consumer real estate		$	6,793,415	$	6,845,063	$	7,034,448	(.8)		(3.4)		$	6,819,239	$	7,068,018	(3.5)	%
Commercial			3,492,049		3,457,720		3,597,644	1.0		(2.9)			3,474,885		3,610,481	(3.8)
Leasing and equipment finance			3,145,914		3,128,329		3,068,550	.6		2.5			3,137,122		3,093,969	1.4
Inventory finance			1,571,004		1,145,183		978,505	37.2		60.6			1,353,469		925,913	46.2
Auto finance			223,893		85,562		-	161.7		N.M.			154,728		-	N.M.
Other			17,647		17,582		19,463	.4		(9.3)			17,612		20,603	(14.5)
	Total	$	15,243,922	$	14,679,439	$	14,698,610	3.8		3.7		$	14,957,055	$	14,718,984	1.6

N.M. = Not meaningful.

· Loans and leases were $15.2 billion at June 30, 2012, an increase of $602.6 million, or 4.1 percent, compared with June 30, 2011, and flat compared with March 31, 2012. The increase from June 30, 2011 was primarily due to growth in the inventory finance and auto finance portfolios, partially offset by lower balances in consumer real estate and commercial loans. The increase in the inventory finance portfolio from the second quarter of 2011 was primarily due to the funding of dealers of Bombardier Recreational Products Inc. (“BRP”), which began on February 1, 2012. Increases in auto finance and commercial loans from the first quarter of 2012 were offset by decreases in inventory finance loans as a result of payments related to seasonal sales in the powersports and lawn and garden segments. Auto finance loans are expected to continue growing throughout 2012 as Gateway One Lending and Finance, LLC (“Gateway One”) expands its sales force, number of active dealers and number of states in its network. Gateway One increased its portfolio of managed loans, which includes loans, loans held for sale, and loans sold and serviced for others, by 40.4 percent to $780.3 million at June 30, 2012 from $555.8 million at March 31, 2012. Gateway One expanded its active dealers to 5,420 at June 30, 2012 from 4,452 at March 31, 2012.

-more-

· Average loans and leases were $15.2 billion at June 30, 2012, an increase of $545.3 million, or 3.7 percent, compared with June 30, 2011, and an increase of $564.5 million, or 3.8 percent, compared with March 31, 2012. The increases from June 30, 2011 and from March 31, 2012 were primarily due to growth in the inventory finance and auto finance portfolios, partially offset by a decrease in the consumer real estate portfolio. The decreases in the average consumer real estate portfolios reflect a decline in production of new fixed-rate first mortgage loans as market rates available for such loans are not as attractive to TCF. The increase in average inventory finance portfolios from both the second quarter of 2011 and the first quarter of 2012 was primarily due to the funding of dealers of BRP products.

Credit Quality

· Over 60-day delinquencies decreased from March 31, 2012 and net charge-offs remained under peak 2010 levels, down $15.9 million year-to-date compared with the same 2011 period. Non-performing assets increased from the first quarter due to increased non-accrual loans, primarily in commercial real estate.

-more-

Credit Quality Summary of Performing and Underperforming Loans and Leases													Table 5

($ in thousands)									60+ Days		Non-accrual
	Performing Loans and Leases⁽¹⁾							Delinquent and			Loans and		Total Loans
June 30, 2012	Non-classified		Classified⁽²⁾			Total			Accruing		Leases		and Leases
Consumer real estate	$	6,547,940	$	22,485		$	6,570,425	$	100,681	$	140,678	$	6,811,784
Commercial		3,070,917		296,322			3,367,239		5,616		150,215		3,523,070
Leasing and equipment finance		3,103,094		15,687			3,118,781		2,895		29,429		3,151,105
Inventory finance		1,446,730		8,427			1,455,157		206		1,900		1,457,263
Auto finance		262,046		-			262,046		142		-		262,188
Other		26,856		-			26,856		34		2,204		29,094
Total loans and leases	$	14,457,583	$	342,921		$	14,800,504	$	109,574	$	324,426	$	15,234,504
Percent of total loans and leases		94.9	%	2.3	%		97.2	%	.7	%	2.1	%	100.0	%


									60+ Days		Non-accrual
	Performing Loans and Leases⁽¹⁾							Delinquent and			Loans and		Total Loans
March 31, 2012		Non-classified		Classified⁽²⁾			Total		Accruing		Leases		and Leases
Consumer real estate	$	6,542,851	$	20,099		$	6,562,950	$	103,655	$	149,304	$	6,815,909
Commercial		3,013,883		314,104			3,327,987		3,425		135,677		3,467,089
Leasing and equipment finance		3,071,833		19,956			3,091,789		6,951		20,015		3,118,755
Inventory finance		1,630,126		6,538			1,636,664		185		1,109		1,637,958
Auto finance		138,879		-			138,879		168		-		139,047
Other		26,288		-			26,288		52		2,838		29,178
Total loans and leases	$	14,423,860	$	360,697		$	14,784,557	$	114,436	$	308,943	$	15,207,936
Percent of total loans and leases		94.8	%	2.4	%		97.2	%	.8	%	2.0	%	100.0	%


									60+ Days		Non-accrual
	Performing Loans and Leases⁽¹⁾							Delinquent and			Loans and		Total Loans
December 31, 2011		Non-classified		Classified⁽²⁾			Total		Accruing		Leases		and Leases
Consumer real estate	$	6,614,679	$	21,606		$	6,636,285	$	109,635	$	149,371	$	6,895,291
Commercial		2,990,515		330,310			3,320,825		1,148		127,519		3,449,492
Leasing and equipment finance		3,093,194		22,227			3,115,421		6,255		20,583		3,142,259
Inventory finance		616,677		7,040			623,717		160		823		624,700
Auto finance		3,231		-			3,231		397		-		3,628
Other		34,829		-			34,829		41		15		34,885
Total loans and leases	$	13,353,125	$	381,183		$	13,734,308	$	117,636	$	298,311	$	14,150,255
Percent of total loans and leases		94.4	%	2.7	%		97.1	%	.8	%	2.1	%	100.0	%

(1) Includes all loans and leases, including TDRs, that are not 60+ days delinquent or on non-accrual status.
(2) Excludes classified loans and leases that are 60+ days delinquent. Classified loans and leases are those for which management has concerns regarding the borrower's ability to meet the existing terms and conditions, but may never become non-performing or result in a loss.

· Performing loans and leases includes all loans and leases, including TDRs, that are not over 60-days delinquent or on non-accrual status. Performing loans and leases comprised 97.2 percent of total loans and leases at June 30, 2012, flat compared with March 31, 2012.

· The over 60-day delinquency rate was .73 percent, down from .77 percent at March 31, 2012 and unchanged from June 30, 2011. The decrease from the first quarter of 2012 was primarily due to decreases in leasing and equipment finance and consumer real estate delinquencies.

-more-

· Non-accrual loans and leases were $324.4 million at June 30, 2012, an increase of $15.5 million, or 5 percent, from March 31, 2012 and an increase of $2.7 million, or less than 1 percent, from June 30, 2011. The increase from March 31, 2012 was primarily due to a $15.8 million increase in commercial real estate non-accrual loans and one large non-accrual lease, partially offset by an $8.6 million decrease in consumer real estate non-accrual loans. The slight increase from June 30, 2011 was primarily due to increased commercial real estate non-accrual loans, partially offset by decreases in consumer real estate and commercial business non-accrual loans. Of the $324.4 million of non-accrual loans and leases at June 30, 2012, 39 percent were less than 60 days past due.

· Other real estate owned was $125.9 million at June 30, 2012, a decrease of $1.3 million from March 31, 2012 and a decrease of $10.6 million from June 30, 2011. The decrease from June 30, 2011 was primarily due to a decrease in the number of consumer properties owned.

· Consumer real estate TDRs include loans where a payment modification (but generally not a reduction of principal) has been granted to a residential real estate customer. Based on clarifying guidance from the Securities and Exchange Commission, beginning in the second quarter of 2012, TCF now classifies trial modifications as TDRs at the beginning of the trial period. Previously, these loans were not classified as TDRs until performance was demonstrated at a reduced payment amount during a short trial period, resulting in a one-time $13.4 million increase of TDRs during the second quarter of 2012. Accruing consumer real estate TDRs totaled $465.6 million at June 30, 2012, and averaged 17 months since modification. These loans had a weighted average yield of 4 percent, and are reserved at an average rate of 14.1 percent. Of the accruing consumer real estate TDRs, 8.13 percent were over 60-days delinquent at June 30, 2012. Included in the $465.6 million of accruing consumer real estate TDRs at June 30, 2012 are $336.4 million, or 72% of the total, of “non-classified” loans, meaning the loans were current and have not been delinquent for at least six months.

· Commercial TDRs include loans where a payment or other modification (but generally not a reduction of principal) has been granted. Accruing commercial TDRs had a weighted average yield of 5.3 percent.

-more-

Allowance for Loan and Lease Losses

Credit Quality Summary																			Table 6
($ in thousands)										Percent Change
				2Q		1Q		2Q		2Q12 vs		2Q12 vs			YTD		YTD		Percent
Allowance for Loan and Lease Losses				2012		2012		2011		1Q12		2Q11			2012		2011		Change
Balance at beginning of period			$	265,293	$	255,672	$	255,308		3.8	%	3.9	%	$	255,672	$	265,819		(3.8)	%
	Charge-offs			(49,833)		(44,675)		(48,457)		11.6		2.8			(94,509)		(109,561)		(13.7)
	Recoveries			4,974		5,742		4,612		(13.4)		7.8			10,716		9,904		8.2
		Net charge-offs		(44,859)		(38,933)		(43,845)		15.2		2.3			(83,793)		(99,657)		(15.9)
	Provision for credit losses			54,106		48,542		44,005		11.5		23.0			102,648		89,279		15.0
	Other			(379)		12		4		N.M.		NM			(366)		31		N.M.
Balance at end of period			$	274,161	$	265,293	$	255,472		3.3		7.3		$	274,161	$	255,472		7.3

Net charge-offs as a percentage of
average loans and leases⁽¹⁾
Consumer real estate
		First mortgage lien		1.58	%	1.66	%	1.78	%	(8)	bps	(20)	bps		1.62		1.80		(18)	bps
		Junior lien		3.07		3.03		2.75		4		32			3.05		2.56		49
	Total consumer real estate			2.05		2.09		2.09		(4)		(4)			2.07		2.04		3
Commercial				.97		.18		.30		79		67			.57		1.13		(56)
Leasing and equipment finance				.15		.02		.45		13		(30)			.08		.41		(33)
Inventory finance				.06		.22		.13		(16)		(7)			.13		.12		1
Auto finance				.14		.01		-		13		14			.11		-		11
Other				N.M		N.M		N.M		N.M		N.M			N.M		N.M		N.M
	Total			1.18		1.06		1.19		12		(1)			1.12		1.35		(23)

Allowance as a percentage of period
	end loans and leases			1.80	%	1.74	%	1.75	%						1.80	%	1.75	%
Ratio of allowance to net charge-offs⁽¹⁾				1.50	X	1.70	X	1.50	X						1.60	X	1.30	X

N.M. = Not meaningful.
(1) Annualized.

· Allowance for loan and lease losses was $274.2 million, or 1.80 percent of loans and leases, an increase of $8.9 million, compared with $265.3 million, or 1.74 percent, at March 31, 2012 and an increase of $18.7 million, compared with $255.5 million, or 1.75 percent, at June 30, 2011.

· Provision for credit losses was $54.1 million, an increase of $5.6 million from $48.5 million recorded in the first quarter of 2012 and an increase of $10.1 million from $44 million in the second quarter of 2011. The increase from both periods was primarily due to increased provision expense on commercial loans and a $4 million reserve loss on one large lease exposure. The increase from the first quarter of 2012 was partially offset by decreased provision expense in inventory finance due to the first quarter on-boarding of the BRP program and lower seasonal loan balances.

· Net loan and lease charge-offs were $44.9 million, or 1.18 percent, annualized, of average loans and leases, up $6 million from $38.9 million, or 1.06 percent, annualized, in the first quarter of 2012 and up

-more-

$1.1 million from $43.8 million, or 1.19 percent, annualized, in the second quarter of 2011. The increase in net charge-offs from the first quarter of 2012 was primarily due to increased net charge-offs on commercial real estate loans. The increase in net charge-offs from the second quarter of 2011 was primarily due to increased net charge-offs on commercial real estate loans, partially offset by decreased net charge-offs on leasing and equipment finance loans and leases.

Deposits

Average Deposits															Table 7
							Percent Change
($ in thousands)	2Q		1Q		2Q		2Q12 vs		2Q12 vs		YTD		YTD		Percent
	2012		2012		2011		1Q12		2Q11		2012		2011		Change

Checking	$	4,636,701	$	4,565,065	$	4,570,543	1.6	%	1.4	%	$	4,600,882	$	4,536,427	1.4	%
Savings		6,053,264		5,905,118		5,628,249	2.5		7.6			5,979,191		5,536,823	8.0
Money market		748,016		662,493		648,862	12.9		15.3			705,255		661,114	6.7
Subtotal		11,437,981		11,132,676		10,847,654	2.7		5.4			11,285,328		10,734,364	5.1
Certificates		1,608,653		1,135,673		1,092,368	41.6		47.3			1,372,164		1,092,452	25.6
Total deposits	$	13,046,634	$	12,268,349	$	11,940,022	6.3		9.3		$	12,657,492	$	11,826,816	7.0

Average interest rate on deposits⁽¹⁾		.31%		.30%		.38%						.31%		.40%

(1) Annualized.

· Total average deposits increased $1.1 billion, or 9.3 percent, from the second quarter of 2011 and increased $778.3 million, or 6.3 percent, from the first quarter of 2012, primarily due to the assumption of $778 million of deposits from Prudential Bank & Trust, FSB (“PB&T”). The deposits consist primarily of IRA accounts with certificates of deposit, savings accounts and brokerage sweep accounts gathered by PB&T through its relationship with Prudential Retirement.

· The average interest cost of deposits in the second quarter of 2012 was .31 percent, down 7 basis points from the second quarter of 2011 and basically flat from the first quarter of 2012. The decrease in the average interest cost of deposits from the second quarter of 2011 was primarily due to pricing strategies on certain deposit products, partially offset by higher average interest costs on the PB&T deposits assumed in June 2012.

-more-

Non-interest Expense

Non-interest Expense																Table 8
								Percent Change
($ in thousands)			2Q		1Q		2Q	2Q12 vs		2Q12 vs			YTD		YTD	Percent
			2012		2012		2011	1Q12		2Q11			2012		2011	Change
Compensation and
	employee benefits	$	97,787	$	95,967	$	89,082	1.9	%	9.8	%	$	193,754	$	178,439	8.6	%
Occupancy and equipment			32,731		32,246		30,783	1.5		6.3			64,977		62,942	3.2
FDIC insurance			8,469		6,386		7,542	32.6		12.3			14,855		14,737	.8
Advertising and marketing			5,404		2,617		3,479	106.5		55.3			8,021		6,639	20.8
Deposit account premiums			1,690		5,971		6,166	(71.7)		(72.6)			7,661		9,364	(18.2)
Other			36,956		37,296		37,067	(.9)		(.3)			74,252		71,633	3.7
	Core operating expenses		183,037		180,483		174,119	1.4		5.1			363,520		343,754	5.8
Loss on termination of debt			-		550,735		-	(100.0)		-			550,735		-	N.M.
Foreclosed real estate and
	repossessed assets, net		12,059		11,047		12,617	9.2		(4.4)			23,106		25,485	(9.3)
Operating lease depreciation			6,417		6,731		7,859	(4.7)		(18.3)			13,148		15,787	(16.7)
Other credit costs, net			1,476		(288)		496	N.M.		197.6			1,188		3,044	(61.0)
	Total non-interest expense	$	202,989	$	748,708	$	195,091	(72.9)		4.0		$	951,697	$	388,070	145.2

N.M. = Not meaningful.

· Compensation and employee benefits expense increased $8.7 million, or 9.8 percent, from the second quarter of 2011 and increased $1.8 million, or 1.9 percent, from the first quarter of 2012. The increase from the second quarter of 2011 was primarily due to Gateway One, acquired in November 2011, as well as increased staffing levels to support the increased assets of the BRP program in Inventory Finance. The increase from the first quarter of 2012 was primarily due to higher salary expense in the auto finance business as it ramps up capacity to originate and service higher loan volumes, increased lending staff across all businesses and an increase in medical plan expenses, partially offset by the seasonal decrease in payroll taxes.

· FDIC insurance expense increased $927 thousand, or 12.3 percent, from the second quarter of 2011 and increased $2.1 million, or 32.6 percent, from the first quarter of 2012. These increases were primarily due to increased insurance rates as a result of the net loss associated with the balance sheet repositioning completed in the first quarter of 2012.

· Foreclosed real estate and repossessed asset expense decreased $558 thousand, or 4.4 percent, from the second quarter of 2011 and increased $1 million, or 9.2 percent, from the first quarter of 2012. The decrease from the second quarter of 2011 was primarily due to fewer consumer real estate properties

-more-

owned. The increase from the first quarter of 2012 was primarily due to increased write-downs on commercial real estate properties owned.

Capital and Borrowing Capacity

Capital Information									Table 9
At period end
($ in thousands, except per-share data)		2Q					4Q
		2012					2011
Total equity	$	1,755,908				$	1,878,627
Total equity to total assets		9.83	%				9.90	%
Book value per common share	$	9.67				$	11.65
Tangible realized common equity to tangible assets⁽¹⁾		7.50	%				8.42	%

Risk-based capital
Tier 1	$	1,508,176		10.53	%	$	1,706,926		12.67	%
Total⁽²⁾		1,877,714		13.11			1,994,875		14.80

Tier 1 leverage capital	$	1,508,176		8.64	%	$	1,706,926		9.15	%

Tier 1 common capital⁽³⁾	$	1,326,518		9.26	%	$	1,581,432		11.74	%

(1) Excludes the impact of goodwill, other intangibles and accumulated other comprehensive income (loss) (see
“Reconciliation of GAAP to Non-GAAP Measures” table).
(2) The Company's capital ratios continue to be in excess of "Well-capitalized" regulatory benchmarks.
(3) Excludes the effect of qualifying trust preferred securities and qualifying non-controlling interest in subsidiaries (see
“Reconciliation of GAAP to Non-GAAP Measures” table).

· During the second quarter of 2012, TCF issued $172.5 million of 7.50 percent Series A Non-Cumulative Perpetual Preferred Stock, par value $.01 per share. The preferred stock qualifies as Tier 1 capital.

· On June 25, 2012, TCF announced that it will fully redeem $115 million of 10.75 percent trust preferred securities on July 30, 2012. As a result, the trust preferred securities are no longer included within the computation of Tier 1 capital.

· Also during the second quarter of 2012, TCF National Bank issued $110 million of subordinated notes. The notes are due June 8, 2022 and bear interest at a fixed rate of 6.25% until maturity, and qualify as Tier 2 capital.

· On July 18, 2012, the Board of Directors of TCF declared a regular quarterly cash dividend of 5 cents per common share payable on August 31, 2012 to stockholders of record at the close of business on August 15, 2012 and a dividend on the 7.50 percent Series A Non-cumulative Perpetual Preferred Stock payable on September 4, 2012 to stockholders of record at the close of business on August 15, 2012.

-more-

· At June 30, 2012, TCF had $2.7 billion in unused, secured borrowing capacity at the FHLB of Des Moines, $525 million in unused, secured borrowing capacity at the Federal Reserve Discount Window and $532 million in unused borrowing capacity under existing federal funds lines.

Website Information

A live webcast of TCF’s conference call to discuss the second quarter earnings will be hosted at TCF’s website, http://ir.tcfbank.com, on July 19, 2012 at 10:00 a.m. CT. Additionally, the webcast will be available for replay at TCF’s website after the conference call. The website also includes free access to company news releases, TCF’s annual report, investor presentations and SEC filings.

____________________________________________________________________________________

TCF is a Wayzata, Minnesota-based national bank holding company with $17.9 billion in total assets at June 30, 2012. TCF has over 430 branches in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana, Arizona and South Dakota, providing retail and commercial banking services. TCF, through its subsidiaries, also conducts commercial leasing and equipment finance business and leverage lending in all 50 states, commercial inventory finance business in the U.S. and Canada, and indirect auto finance business in over 30 states. For more information about TCF, please visit http://ir.tcfbank.com.

-more-

Cautionary Statements for Purposes of the Safe Harbor Provisions of the Securities Litigation Reform Act

Any statements contained in this earnings release regarding the outlook for the Company’s businesses and their respective markets, such as projections of future performance, guidance, statements of the Company’s plans and objectives, forecasts of market trends and other matters, are forward-looking statements based on the Company’s assumptions and beliefs. Such statements may be identified by such words or phrases as “will likely result,” “are expected to,” “will continue,” “outlook,” “will benefit,” “is anticipated,” “estimate,” “project,” “management believes” or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those discussed in such statements and no assurance can be given that the results in any forward-looking statement will be achieved. For these statements, TCF claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Any forward-looking statement speaks only as of the date on which it is made, and we disclaim any obligation to subsequently revise any forward-looking statement to reflect events or circumstances after such date or to reflect the occurrence of anticipated or unanticipated events.

Certain factors could cause the Company’s future results to differ materially from those expressed or implied in any forward-looking statements contained in this release. These factors include the factors discussed in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2011 under the heading “Risk Factors,” the factors discussed below and any other cautionary statements, written or oral, which may be made or referred to in connection with any such forward-looking statements. Since it is not possible to foresee all such factors, these factors should not be considered as complete or exhaustive.

Adverse Economic or Business Conditions, Credit and Other Risks Deterioration in general economic and banking industry conditions, including defaults, anticipated defaults or rating agency downgrades of sovereign debt (including debt of the U.S.), or continued high rates of or increases in unemployment in TCF’s primary banking markets; adverse economic, business and competitive developments such as shrinking interest margins, deposit outflows, deposit account attrition or an inability to increase the number of deposit accounts; adverse changes in credit quality and other risks posed by TCF’s loan, lease, investment and securities available for sale portfolios, including declines in commercial or residential real estate values or changes in the allowance for loan and lease losses dictated by new market conditions or regulatory requirements; interest rate risks resulting from fluctuations in prevailing interest rates or other factors that result in a mismatch between yields earned on TCF’s interest-earning assets and the rates paid on its deposits and borrowings; foreign currency exchange risks; counterparty risk, including the risk of defaults by our counterparties or diminished availability of counterparties who satisfy our credit quality requirements; decreases in demand for the types of equipment that TCF leases or finances; limitations on TCF’s ability to attract and retain manufacturers and dealers to expand the inventory finance business.

Legislative and Regulatory Requirements New consumer protection and supervisory requirements and regulations, including those resulting from action by the CFPB and changes in the scope of Federal preemption of state laws that could be applied to national banks; the imposition of requirements with an adverse impact relating to TCF’s lending, loan collection and other business activities as a result of the Dodd-Frank Act, or other legislative or regulatory developments such as mortgage foreclosure moratorium laws or imposition of underwriting or other limitations that impact the ability to use certain variable-rate products; impact of legislative, regulatory or other changes affecting customer account charges and fee income; changes to bankruptcy laws which would result in the loss of all or part of TCF’s security interest due to collateral value declines; deficiencies in TCF’s compliance under the Bank Secrecy Act in past or future periods, which may result in regulatory enforcement action including monetary penalties; increased health care costs resulting from Federal health care reform legislation; adverse regulatory examinations and resulting enforcement actions or other adverse consequences such as increased capital requirements or higher deposit insurance assessments; heightened regulatory practices, requirements or expectations, including, but not limited to, requirements related to the Bank Secrecy Act and anti-money laundering compliance activity.

Earnings/Capital Risks and Constraints, Liquidity Risks Limitations on TCF’s ability to pay dividends or to increase dividends because of financial performance deterioration, regulatory restrictions or limitations; increased deposit insurance premiums, special assessments or other costs related to adverse conditions in the banking industry, the economic impact on banks of the Dodd-Frank Act and other regulatory reform legislation; the impact of financial regulatory reform, including the phase out of trust preferred securities in tier 1 capital called for by the Dodd-Frank Act, or additional capital, leverage, liquidity and risk management requirements or changes in the composition of qualifying regulatory capital (including those resulting from U.S. implementation of Basel III requirements); adverse changes in

-more-

securities markets directly or indirectly affecting TCF’s ability to sell assets or to fund its operations; diminished unsecured borrowing capacity resulting from TCF credit rating downgrades and unfavorable conditions in the credit markets that restrict or limit various funding sources; costs associated with new regulatory requirements or interpretive guidance relating to liquidity; uncertainties relating to customer opt-in preferences with respect to overdraft fees on point of sale and ATM transactions or the success of TCF’s reintroduction of the Free Checking product which may have an adverse impact on TCF’s fee revenue; uncertainties relating to future retail deposit account changes, including limitations on TCF’s ability to predict customer behavior and the impact on TCF’s fee revenues.

Competitive Conditions; Supermarket Branching Risk; Growth Risks Reduced demand for financial services and loan and lease products; adverse developments affecting TCF’s supermarket banking relationships or any of the supermarket chains in which TCF maintains supermarket branches including the announcement on July 11, 2012 by SuperValu that it is exploring strategic alternatives; customers completing financial transactions without using a bank; the effect of any negative publicity; slower than anticipated growth in existing or acquired businesses; inability to successfully execute on TCF’s growth strategy through acquisitions or cross-selling opportunities; failure to expand or diversify our balance sheet through programs or new opportunities; failure to successfully attract and retain new customers; product additions and addition of distribution channels (or entry into new markets) for existing products.

Technological and Operational Matters Technological or operational difficulties, loss or theft of information, counterparty failures and the possibility that deposit account losses (fraudulent checks, etc.) may increase; failure to keep pace with technological change.

Litigation Risks Results of litigation, including class action litigation concerning TCF’s lending or deposit activities including account servicing processes or fees or charges, or employment practices, and possible increases in financial obligations for certain litigation against Visa U.S.A. and potential reductions in card revenues resulting from such litigation or other litigation against Visa.

Accounting, Audit, Tax and Insurance Matters Changes in accounting standards or interpretations of existing standards; federal or state monetary, fiscal or tax policies, including adoption of state legislation that would increase state taxes; ineffective internal controls; adverse state or Federal tax assessments or findings in tax audits; lack of or inadequate insurance coverage for claims against TCF; potential for claims and legal action related to TCF’s fiduciary responsibilities.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

Three Months Ended June 30,

Change

2012

2011

Interest income:

Loans and leases

208,766

213,823

(5,057)

(2.4)

Securities available for sale

5,816

20,639

(14,823)

(71.8)

Investments and other

3,633

1,836

1,797

97.9

Total interest income

218,215

236,298

(18,083)

(7.7)

Interest expense:

Deposits

10,197

11,430

(1,233)

(10.8)

Borrowings

9,794

48,718

(38,924)

(79.9)

Total interest expense

19,991

60,148

(40,157)

(66.8)

Net interest income

198,224

176,150

22,074

12.5

Provision for credit losses

54,106

44,005

10,101

23.0

Net interest income after provision for

credit losses

144,118

132,145

11,973

9.1

Non-interest income:

Fees and service charges

48,090

56,396

(8,306)

(14.7)

Card revenue

13,530

28,219

(14,689)

(52.1)

ATM revenue

6,276

7,091

(815)

(11.5)

Subtotal

67,896

91,706

(23,810)

(26.0)

Leasing and equipment finance

23,207

22,279

928

4.2

Gains on sales of auto loans

5,496

N.M.

Other

3,168

384

2,784

N.M.

Fees and other revenue

99,767

114,369

(14,602)

(12.8)

Gains (losses) on securities, net

13,116

(227)

13,343

N.M.

Total non-interest income

112,883

114,142

(1,259)

(1.1)

Non-interest expense:

Compensation and employee benefits

97,787

89,082

8,705

9.8

Occupancy and equipment

32,731

30,783

1,948

6.3

FDIC insurance

8,469

7,542

927

12.3

Advertising and marketing

5,404

3,479

1,925

55.3

Deposit account premiums

1,690

6,166

(4,476)

(72.6)

Other

36,956

37,067

(111)

(.3)

Subtotal

183,037

174,119

8,918

5.1

Loss on termination of debt

Foreclosed real estate and repossessed assets, net

12,059

12,617

(558)

(4.4)

Operating lease depreciation

6,417

7,859

(1,442)

(18.3)

Other credit costs, net

1,476

496

980

197.6

Total non-interest expense

202,989

195,091

7,898

4.0

Income before income tax expense

54,012

51,196

2,816

5.5

Income tax expense

20,542

19,086

1,456

7.6

Income after income tax expense

33,470

32,110

1,360

4.2

Income attributable to non-controlling interest

1,939

1,686

253

15.0

Net income available to common stockholders

31,531

30,424

1,107

3.6

Other comprehensive income:

Unrealized holding gains arising during the

period on securities available for sale

19,868

31,084

(11,216)

(36.1)

Foreign currency hedge

268

(93)

361

N.M.

Foreign currency translation adjustment

(324)

120

(444)

N.M.

Recognized postretirement prior service cost

and transition obligation

(7)

(8)

N.M.

Income tax expense

(7,375)

(11,362)

3,987

(35.1)

Total other comprehensive income

12,430

19,750

(7,320)

(37.1)

Comprehensive income

43,961

50,174

(6,213)

(12.4)

Net income per common share:

Basic

.20

.19

.01

5.3

Diluted

.20

.19

.01

5.3

Dividends declared per common share

.05

Average common and common equivalent

shares outstanding (in thousands):

Basic

159,113

157,064

2,048

1.3

Diluted

159,539

157,463

2,077

1.3

N.M. Not meaningful.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

Six Months Ended June 30,

Change

2012

2011

Interest income:

Loans and leases

414,750

428,496

(13,746)

(3.2)

Securities available for sale

24,928

40,068

(15,140)

(37.8)

Investments and other

6,066

3,637

2,429

138.6

Total interest income

445,744

472,201

(26,457)

(5.6)

Interest expense:

Deposits

19,258

23,434

(4,176)

(17.8)

Borrowings

48,089

98,577

(50,488)

(51.2)

Total interest expense

67,347

122,011

(54,664)

(44.8)

Net interest income

378,397

350,190

28,207

8.1

Provision for credit losses

102,648

89,279

13,369

15.0

Net interest income after provision for

credit losses

275,749

260,911

14,838

5.7

Non-interest income:

Fees and service charges

89,946

109,909

(19,963)

(18.2)

Card revenue

26,737

54,803

(28,066)

(51.2)

ATM revenue

12,475

13,796

(1,321)

(9.6)

Subtotal

129,158

178,508

(49,350)

(27.6)

Leasing and equipment finance

46,074

49,029

(2,955)

(6.0)

Gains on sales of auto loans

7,746

(40,114)

(17.5)

Other

5,523

1,078

7,746

100.0

Fees and other revenue

188,501

228,615

(84,673)

(37.0)

Gains (losses) on securities, net

89,727

(227)

Total non-interest income

278,228

228,388

89,954

Non-interest expense:

Compensation and employee benefits

193,754

178,439

Occupancy and equipment

64,977

62,942

15,315

8.6

FDIC insurance

14,855

14,737

2,035

3.2

Advertising and marketing

8,021

6,639

(1,703)

(18.2)

Deposit account premiums

7,661

9,364

118

0.8

Other

74,252

71,633

1,382

20.8

Subtotal

363,520

343,754

2,619

3.7

Loss on termination of debt

550,735

(1,856)

(61.0)

Foreclosed real estate and repossessed assets, net

23,106

25,485

19,766

5.8

Operating lease depreciation

13,148

15,787

(2,379)

(9.3)

Other credit costs, net

1,188

3,044

(2,639)

(16.7)

Total non-interest expense

951,697

388,070

550,735

100.0

(Loss) income before income tax expense

(397,720)

101,229

563,627

145.2

Income tax (benefit) expense

(149,702)

37,858

(498,949)

(Loss) income after income tax expense

(248,018)

63,371

(187,560)

Income attributable to non-controlling interest

3,345

2,675

(311,389)

Net (loss) income available to common stockholders

(251,363)

60,696

670

25.0

Other comprehensive (loss) income:

Reclassification adjustment for securities gains

included in net income

(76,967)

N.M.

Unrealized holding gains arising during the

period on securities available for sale

12,100

10,014

2,086

20.8

Foreign currency hedge

(136)

(600)

464

(77.3)

Foreign currency translation adjustment

534

(473)

(88.6)

Recognized postretirement actuarial service cost

and transition obligation

(14)

(16)

N.M.

Income tax benefit (expense)

23,833

(3,458)

27,291

N.M.

Total other comprehensive (loss) income

(41,123)

6,492

(47,615)

N.M.

Comprehensive (loss) income

(292,486)

67,188

(359,674)

N.M.

Net income per common share:

Basic

(1.58)

.40

(1.98)

N.M.

Diluted

(1.58)

.40

(1.98)

N.M.

Dividends declared per common share

.10

Average common and common equivalent

shares outstanding (in thousands):

Basic

158,810

150,765

8,045

5.3

Diluted

158,810

151,136

7,673

5.1

N.M. Not meaningful.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in thousands, except per-share data)

(Unaudited)

At Jun. 30

At Dec. 31

Change

2012

2011

ASSETS

Cash and due from banks

865,257

1,389,704

(524,447)

(37.7)

Investments

120,814

157,780

(36,966)

(23.4)

Securities available for sale

757,233

2,324,038

(1,566,805)

(67.4)

Loans and leases held for sale

9,664

14,321

(4,657)

(32.5)

Loans and leases:

Consumer real estate

6,811,784

6,895,291

(83,507)

(1.2)

Commercial

3,523,070

3,449,492

73,578

2.1

Leasing and equipment finance

3,151,105

3,142,259

8,846

Inventory finance

1,457,263

624,700

832,563

N.M.

Auto finance

262,188

3,628

258,560

N.M.

Other

29,094

34,885

(5,791)

(16.6)

Total loans and leases

15,234,504

14,150,255

1,084,249

7.7

Allowance for loan and lease losses

(274,161)

(255,672)

(18,489)

7.2

Net loans and leases

14,960,343

13,894,583

1,065,760

7.7

Premises and equipment, net

442,311

436,281

6,030

1.4

Goodwill

225,640

Other assets

489,335

537,041

(47,706)

(8.9)

Total assets

17,870,597

18,979,388

(1,108,791)

(5.8)

LIABILITIES AND EQUITY

Deposits:

Checking

4,701,917

4,629,749

72,168

1.6

Savings

6,227,133

5,855,263

371,870

6.4

Money market

880,545

651,377

229,168

35.2

Subtotal

11,809,595

11,136,389

673,206

6.0

Certificates of deposit

1,894,711

1,065,615

829,096

77.8

Total deposits

13,704,306

12,202,004

1,502,302

12.3

Short-term borrowings

7,487

6,416

1,071

16.7

Long-term borrowings

2,075,923

4,381,664

(2,305,741)

(52.6)

Total borrowings

2,083,410

4,388,080

(2,304,670)

(52.5)

Accrued expenses and other liabilities

326,973

510,677

(183,704)

(36.0)

Total liabilities

16,114,689

17,100,761

(986,072)

(5.8)

Equity:

Preferred stock, par value $.01 per share,

30,000,000 authorized; and 6,900 shares issued

166,721

N.M.

Common stock, par value $.01 per share,

280,000,000 shares authorized; 162,790,655

and 160,366,380 shares issued

1,628

1,604

1.5

Additional paid-in capital

738,437

715,247

23,190

3.2

Retained earnings, subject to certain restrictions

860,560

1,127,823

(267,263)

(23.7)

Accumulated other comprehensive income

15,703

56,826

(41,123)

(72.4)

Treasury stock at cost, 42,566 shares, and other

(42,078)

(33,367)

(8,711)

26.1

Total TCF Financial Corp. stockholders' equity

1,740,971

1,868,133

(127,162)

(6.8)

Non-controlling interest in subsidiaries

14,937

10,494

4,443

42.3

Total equity

1,755,908

1,878,627

(122,719)

(6.5)

Total liabilities and equity

17,870,597

18,979,388

(1,108,791)

(5.8)

N.M. Not meaningful.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

SUMMARY OF CREDIT QUALITY DATA

(Dollars in thousands)

(Unaudited)

Change from

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Jun. 30,

2012

2011

2012

2011

Delinquency Data - Principal Balances⁽¹⁾

60 days or more:

Consumer real estate

First mortgage lien

86,714

88,092

87,358

78,241

74,090

(1,378)

12,624

Junior lien

13,967

15,563

22,277

18,499

17,780

(1,596)

(3,813)

Total consumer real estate

100,681

103,655

109,635

96,740

91,870

(2,974)

8,811

Commercial

5,616

3,425

1,148

3,079

6,238

2,191

(622)

Leasing and equipment finance

1,492

4,919

3,512

2,840

2,447

(3,427)

(955)

Inventory finance

206

185

160

306

145

Auto finance

Other

171

(18)

(137)

Subtotal

108,091

112,238

114,496

103,023

100,871

(4,147)

7,220

Acquired portfolios

1,483

2,198

3,140

1,870

2,993

(715)

(1,510)

Total delinquencies

109,574

114,436

117,636

104,893

103,864

(4,862)

5,710

Delinquency Data - % of Portfolio⁽¹⁾

60 days or more:

Consumer real estate

First mortgage lien

1.93

1.89

1.68

1.58

bps

Junior lien

.64

.74

1.04

.86

.82

(10)

(18)

Total consumer real estate

1.51

1.55

1.63

1.42

1.34

(4)

Commercial

.17

.10

.03

.09

.18

(1)

Leasing and equipment finance

.05

.17

.13

.11

.09

(12)

(4)

Inventory finance

.01

.03

.04

.02

(1)

Auto finance

.02

Other

.13

.20

.12

.18

.46

(7)

(33)

Subtotal

.74

.77

.85

.75

.73

(3)

Acquired portfolios

.58

.66

.84

.51

.70

(8)

(12)

Total delinquencies

.73

.77

.85

.75

.73

(4)

(1) Excludes non-accrual loans and leases.

Change from

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Jun. 30,

2012

2011

2012

2011

Non-Accrual Loans and Leases

Non-accrual loans and leases:

Consumer real estate

First mortgage lien

122,406

125,895

129,114

130,671

129,837

(3,489)

(7,431)

Junior lien

18,272

23,409

20,257

18,223

21,069

(5,137)

(2,797)

Total consumer real estate

140,678

149,304

149,371

148,894

150,906

(8,626)

(10,228)

Commercial

150,215

135,677

127,519

133,260

140,407

14,538

9,808

Leasing and equipment finance

29,429

20,015

20,583

24,437

29,682

9,414

(253)

Inventory finance

1,900

1,109

823

1,077

634

791

1,266

Other

2,204

2,838

(634)

2,172

Total non-accrual loans and leases

324,426

308,943

298,311

307,672

321,661

15,483

2,765

Non-accrual loans and leases - rollforward

Balance, beginning of period

308,943

298,311

307,672

321,661

319,049

10,632

(10,106)

Additions

111,739

85,670

125,893

80,014

86,996

26,069

24,743

Charge-offs

(28,228)

(19,683)

(38,263)

(29,338)

(22,401)

(8,545)

(5,827)

Transfers to other assets

(34,473)

(25,603)

(31,486)

(21,654)

(27,078)

(8,870)

(7,395)

Return to accrual status

(22,200)

(21,243)

(19,932)

(20,272)

(21,985)

(957)

(215)

Payments received

(12,261)

(9,202)

(45,238)

(23,843)

(14,383)

(3,059)

2,122

Other, net

906

693

(335)

1,104

1,463

213

(557)

Balance, end of period

324,426

308,943

298,311

307,672

321,661

15,483

2,765

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

SUMMARY OF CREDIT QUALITY DATA, CONTINUED

(Dollars in thousands)

(Unaudited)

Change from

Jun 30,

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Jun 30,

2012

2011

2012

2011

Other Real Estate Owned

Other real estate owned⁽¹⁾

Consumer real estate

83,176

84,996

87,792

88,206

94,311

(1,820)

(11,135)

Commercial real estate

42,700

42,232

47,106

42,207

42,188

468

512

Total other real estate owned

125,876

127,228

134,898

130,413

136,499

(1,352)

(10,623)

Other real estate owned - rollforward

Balance, beginning of period

127,228

134,898

130,413

136,499

142,154

(7,670)

(14,926)

Transferred in

33,739

25,624

33,864

24,939

27,649

8,115

6,090

Sales

(29,448)

(28,601)

(25,909)

(26,095)

(28,759)

(847)

(689)

Writedowns

(6,237)

(5,267)

(5,719)

(6,337)

(6,741)

(970)

504

Other, net

594

574

2,249

1,407

2,196

(1,602)

Balance, end of period

125,876

127,228

134,898

130,413

136,499

(1,352)

(10,623)

Ending number of properties owned

Consumer real estate

426

466

465

456

488

(40)

(62)

Commercial real estate

Total

458

498

489

514

(40)

(56)

(1) Includes properties owned and foreclosed properties subject to redemption.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

SUMMARY OF CREDIT QUALITY DATA, CONTINUED

(Dollars in thousands)

(Unaudited)

Allowance for Loan and Lease Losses

At June 30, 2012

At March 31, 2012

At June 30, 2011

Change from

% of

Mar. 31,

Jun. 30,

Balance

Portfolio

Balance

Portfolio

Balance

Portfolio

2012

2011

Consumer real estate

188,087

2.76

183,825

2.70

175,716

2.50

bps

Commercial

50,699

1.44

50,444

1.45

50,783

1.41

(1)

Leasing and

equipment finance

25,450

.81

21,537

.69

24,611

.81

Inventory finance

7,072

.49

7,556

.46

2,941

.32

Auto finance

1,951

.74

1,019

.73

N.M.

Other

902

3.10

912

3.13

1,421

3.79

(3)

(69)

Total

274,161

1.80

265,293

1.74

255,472

1.75

Net Charge-Offs as a Percentage of Average Loans and Leases

Change from

Quarter Ended⁽¹⁾

Quarter Ended

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Jun. 30,

2012

2011

2012

2011

Consumer real estate

First mortgage lien

1.58

1.66

1.94

2.29

1.78

(8)

bps

(20)

bps

Junior lien

3.07

3.03

2.63

2.99

2.75

Total consumer real estate

2.05

2.09

2.15

2.51

2.09

(4)

Commercial

.97

.18

1.79

.57

.30

Leasing and equipment finance

.15

.02

.46

.36

.45

(30)

Inventory finance

.06

.22

.03

.13

(16)

(7)

Auto finance

.14

.01

N.M.

Other

N.M.

Total

1.18

1.06

1.63

1.48

1.19

(1)

(1) Annualized.

N.M. Not Meaningful.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Dollars in thousands)

(Unaudited)

Three Months Ended June 30,

2012

2011

Average

Yields and

Average

Yields and

Balance

Interest

Rates^{(1) (2)}

Balance

Interest

Rates^{(1) (2)}

ASSETS:

Investments and other

430,084

2,654

2.48

693,678

1,836

1.06

U.S. Government sponsored entities:

Mortgage-backed securities, fixed-rate

733,796

5,813

3.17

2,104,294

20,614

3.92

U.S. Treasury securities

135,613

.06

Other securities

225

4.14

353

5.68

Total securities available for sale⁽³⁾

734,021

5,816

3.17

2,240,260

20,639

3.69

Loans and leases held for sale

44,788

979

8.80

Loans and leases:

Consumer real estate:

Fixed-rate

4,365,670

63,432

5.84

4,655,198

70,615

6.08

Variable-rate

2,427,745

30,202

5.00

2,379,250

30,566

5.15

Total consumer real estate

6,793,415

93,634

5.54

7,034,448

101,181

5.77

Commercial:

Fixed- and adjustable-rate

2,730,085

37,242

5.49

2,877,903

41,442

5.78

Variable-rate

761,964

7,550

3.99

719,741

7,757

4.32

Total commercial

3,492,049

44,792

5.16

3,597,644

49,199

5.49

Leasing and equipment finance

3,145,914

43,109

5.48

3,068,550

46,184

6.02

Inventory finance

1,571,004

23,690

6.07

978,505

17,340

7.11

Auto finance

223,893

3,835

6.89

Other

17,647

336

7.66

19,463

437

9.01

Total loans and leases

15,243,922

209,396

5.52

14,698,610

214,341

5.85

Total interest-earning assets

16,452,815

218,845

5.34

17,632,548

236,816

5.38

Other assets

1,202,003

1,163,783

Total assets

17,654,818

18,796,331

LIABILITIES AND EQUITY:

Non-interest bearing deposits:

Retail

1,316,767

1,475,191

Small business

725,052

683,323

Commercial and custodial

310,321

278,808

Total non-interest bearing deposits

2,352,140

2,437,322

Interest-bearing deposits:

Checking

2,306,810

883

.15

2,152,646

1,221

.23

Savings

6,031,015

5,164

.34

5,608,824

7,279

.52

Money market

748,016

718

.39

648,862

731

.45

Subtotal

9,085,841

6,765

.30

8,410,332

9,231

.44

Certificates of deposit

1,608,653

3,432

.86

1,092,368

2,199

.82

Total interest-bearing deposits

10,694,494

10,197

.38

9,502,700

11,430

.48

Total deposits

13,046,634

10,197

.31

11,940,022

11,430

.38

Borrowings:

Short-term borrowings

705,888

535

.30

35,227

.24

Long-term borrowings

1,986,182

9,259

1.87

4,513,301

48,697

4.33

Total borrowings

2,692,070

9,794

1.46

4,548,528

48,718

4.29

Total interest-bearing liabilities

13,386,564

19,991

.60

14,051,228

60,148

1.72

Total deposits and borrowings

15,738,704

19,991

.51

16,488,550

60,148

1.46

Other liabilities

335,113

556,641

Total liabilities

16,073,817

17,045,191

Total TCF Financial Corp. stockholders' equity

1,563,158

1,739,523

Non-controlling interest in subsidiaries

17,843

11,617

Total equity

1,581,001

1,751,140

Total liabilities and equity

17,654,818

18,796,331

Net interest income and margin

198,854

4.86

176,668

4.02

(1) Annualized.

(2) Interest and yields are presented on a fully tax equivalent basis.

(3) Average balances and yields of securities available for sale are based upon the historical amortized cost and excludes equity securities.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Dollars in thousands)

(Unaudited)

Six Months Ended June 30,

2012

2011

Average

Yields and

Average

Yields and

Balance

Interest

Rates^{(1) (2)}

Balance

Interest

Rates^{(1) (2)}

ASSETS:

Investments and other

587,802

5,042

1.72

636,190

3,637

1.15

U.S. Government sponsored entities:

Mortgage-backed securities, fixed-rate

1,410,407

24,924

3.53

2,033,159

40,025

3.94

U.S. Treasury securities

91,685

.07

Other securities

227

4.13

370

5.44

Total securities available for sale⁽³⁾

1,410,634

24,928

3.53

2,125,214

40,068

3.77

Loans and leases held for sale

25,330

1,024

8.13

Loans and leases:

Consumer real estate:

Fixed-rate

4,404,410

129,584

5.92

4,694,690

142,421

6.12

Variable-rate

2,414,829

60,270

5.02

2,373,328

60,846

5.17

Total consumer real estate

6,819,239

189,854

5.60

7,068,018

203,267

5.80

Commercial:

Fixed- and adjustable-rate

2,733,967

75,452

5.55

2,895,151

83,484

5.81

Variable-rate

740,918

15,062

4.09

715,330

15,414

4.35

Total commercial

3,474,885

90,514

5.24

3,610,481

98,898

5.52

Leasing and equipment finance

3,137,122

87,109

5.55

3,093,969

93,741

6.06

Inventory finance

1,353,469

42,416

6.30

925,913

32,665

7.11

Auto finance

154,728

5,418

7.04

Other

17,612

705

8.04

20,603

913

8.94

Total loans and leases

14,957,055

416,016

5.59

14,718,984

429,484

5.87

Total interest-earning assets

16,980,821

447,010

5.29

17,480,388

473,189

5.45

Other assets

1,290,585

1,158,886

Total assets

18,271,406

18,639,274

LIABILITIES AND EQUITY:

Non-interest bearing deposits:

Retail

1,338,539

1,466,507

Small business

716,734

675,861

Commercial and custodial

307,427

285,125

Total non-interest bearing deposits

2,362,700

2,427,493

Interest-bearing deposits:

Checking

2,260,499

1,785

.16

2,128,673

2,577

.24

Savings

5,956,874

10,602

.36

5,517,084

14,776

.54

Money market

705,255

1,328

.38

661,114

1,639

.50

Subtotal

8,922,628

13,715

.31

8,306,871

18,992

.46

Certificates of deposit

1,372,164

5,543

.81

1,092,452

4,442

.82

Total interest-bearing deposits

10,294,792

19,258

.38

9,399,323

23,434

.50

Total deposits

12,657,492

19,258

.31

11,826,816

23,434

.40

Borrowings:

Short-term borrowings

571,019

865

.30

59,000

113

.39

Long-term borrowings

2,901,673

47,224

3.27

4,607,492

98,464

4.30

Total borrowings

3,472,692

48,089

2.78

4,666,492

98,577

4.25

Total interest-bearing liabilities

13,767,484

67,347

.98

14,065,815

122,011

1.75

Total deposits and borrowings

16,130,184

67,347

.84

16,493,308

122,011

1.49

Other liabilities

435,210

508,983

Total liabilities

16,565,394

17,002,291

Total TCF Financial Corp. stockholders' equity

1,690,337

1,627,238

Non-controlling interest in subsidiaries

15,675

9,745

Total equity

1,706,012

1,636,983

Total liabilities and equity

18,271,406

18,639,274

Net interest income and margin

379,663

4.49

351,178

4.04

(1) Annualized.

(2) Interest and yields are presented on a fully tax equivalent basis.

(3) Average balances and yields of securities available for sale are based upon the historical amortized cost and excludes equity securities.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME AND FINANCIAL HIGHLIGHTS

(Dollars in thousands, except per-share data)

(Unaudited)

At or For the Three Months Ended

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

2012

2011

Interest income:

Loans and leases

208,766

205,984

205,415

210,885

213,823

Securities available for sale

5,816

19,112

22,559

22,561

20,639

Investments and other

3,633

2,433

2,333

1,997

1,836

Total interest income

218,215

227,529

230,307

235,443

236,298

Interest expense:

Deposits

10,197

9,061

9,791

11,883

11,430

Borrowings

9,794

38,295

47,082

47,496

48,718

Total interest expense

19,991

47,356

56,873

59,379

60,148

Net interest income

198,224

180,173

173,434

176,064

176,150

Provision for credit losses

54,106

48,542

59,249

52,315

44,005

Net interest income after provision for

credit losses

144,118

131,631

114,185

123,749

132,145

Non-interest income:

Fees and service charges

48,090

41,856

51,002

58,452

56,396

Card revenue

13,530

13,207

13,643

27,701

28,219

ATM revenue

6,276

6,199

6,608

7,523

7,091

Subtotal

67,896

61,262

71,253

93,676

91,706

Leasing and equipment finance

23,207

22,867

18,492

21,646

22,279

Gains on sales of auto loans

5,496

2,250

1,133

Other

3,168

2,355

1,570

786

384

Fees and other revenue

99,767

88,734

92,448

116,108

114,369

Gains (losses) on securities, net

13,116

76,611

5,842

1,648

(227)

Total non-interest income

112,883

165,345

98,290

117,756

114,142

Non-interest expense:

Compensation and employee benefits

97,787

95,967

82,595

87,758

89,082

Occupancy and equipment

32,731

32,246

32,366

31,129

30,783

FDIC insurance

8,469

6,386

6,647

7,363

7,542

Advertising and marketing

5,404

2,617

2,250

1,145

3,479

Deposit account premiums

1,690

5,971

6,482

7,045

6,166

Other

36,956

37,296

39,148

34,708

37,067

Subtotal

183,037

180,483

169,488

169,148

174,119

Loss on termination of debt

550,735

Foreclosed real estate and repossessed assets, net

12,059

11,047

11,323

12,430

12,617

Operating lease depreciation

6,417

6,731

6,811

7,409

7,859

Other credit costs, net

1,476

(288)

(89)

(139)

496

Total non-interest expense

202,989

748,708

187,533

188,848

195,091

Income (loss) before income tax expense

54,012

(451,732)

24,942

52,657

51,196

Income tax expense (benefit)

20,542

(170,244)

7,424

19,159

19,086

Income (loss) after income tax expense

33,470

(281,488)

17,518

33,498

32,110

Income attributable to non-controlling interest

1,939

1,406

1,075

1,243

1,686

Net income (loss) available to common stockholders

31,531

(282,894)

16,443

32,255

30,424

Other comprehensive income (loss):

Reclassification adjustment for securities gains

included in net income

(76,967)

(6,130)

(1,915)

Unrealized holding gains (losses) arising during the

period on securities available for sale

19,868

(7,768)

(4,334)

116,958

31,084

Foreign currency hedge

268

(404)

(458)

1,319

(93)

Foreign currency translation adjustment

(324)

385

443

(1,410)

120

Recognized postretirement prior service cost

and transition obligation

(7)

305

Income tax (expense) benefit

(7,375)

31,208

3,890

(42,643)

(11,362)

Total other comprehensive income (loss)

12,430

(53,553)

(6,284)

72,310

19,750

Comprehensive income (loss)

43,961

(336,447)

10,159

104,565

50,174

Net income (loss) per common share:

Basic

.20

(1.78)

.10

.20

.19

Diluted

.20

(1.78)

.10

.20

.19

Dividends declared per common share

.05

Financial Highlights:

Pre-tax pre-provision profit⁽¹⁾

108,118

70,578

84,191

104,972

95,201

Return on average assets⁽²⁾

.76

(5.96)

.37

.71

.68

Return on average common equity⁽²⁾

8.13

(63.38)

3.55

7.12

7.00

Net interest margin⁽²⁾

4.86

4.14

3.92

3.96

4.02

(1) Pre-tax pre-provision profit ("PTPP") is calculated as total revenues less non-interest expense. First quarter and year-to-date 2012 PTPP excludes the net loss

of $473.8 million related to the balance sheet repositioning completed in the first quarter of 2012.

(2) Annualized.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEETS

(In thousands)

(Unaudited)

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

2012

2011

ASSETS

Cash and due from banks

555,590

863,310

1,175,118

1,078,521

802,812

Investments

149,813

168,805

162,359

162,717

166,039

Mortgage-backed securities

736,251

2,021,574

2,374,026

2,357,865

2,153,016

U.S. Treasury securities

10,761

135,613

Other securities

2,097

1,678

1,816

2,132

2,360

Total securities available for sale

738,348

2,023,252

2,375,842

2,370,758

2,290,989

Loans and leases held for sale

44,788

5,872

4,822

Loans and leases:

Consumer real estate:

Fixed-rate

4,365,670

4,443,148

4,528,165

4,592,855

4,655,198

Variable-rate

2,427,745

2,401,915

2,404,886

2,392,966

2,379,250

Total consumer real estate

6,793,415

6,845,063

6,933,051

6,985,821

7,034,448

Commercial:

Fixed- and adjustable-rate

2,730,085

2,737,848

2,775,219

2,853,117

2,877,903

Variable-rate

761,964

719,872

701,441

711,081

719,741

Total commercial

3,492,049

3,457,720

3,476,660

3,564,198

3,597,644

Leasing and equipment finance

3,145,914

3,128,329

3,043,329

3,066,208

3,068,550

Inventory finance

1,571,004

1,145,183

766,885

826,198

978,505

Auto finance

223,893

85,562

1,442

Other

17,647

17,582

17,944

18,183

19,463

Total loans and leases

15,243,922

14,679,439

14,239,311

14,460,608

14,698,610

Allowance for loan and lease losses

(266,187)

(257,895)

(251,158)

(253,547)

(255,441)

Net loans and leases

14,977,735

14,421,544

13,988,153

14,207,061

14,443,169

Premises and equipment, net

438,438

435,412

436,715

439,288

442,529

Goodwill

225,640

179,070

152,599

Other assets

524,466

753,873

598,367

582,290

498,194

Total assets

17,654,818

18,897,708

18,920,446

18,993,234

18,796,331

LIABILITIES AND EQUITY

Non-interest-bearing deposits:

Retail

1,316,767

1,359,781

1,330,462

1,396,857

1,475,191

Small business

725,052

708,416

738,867

704,272

683,323

Commercial and custodial

310,321

305,064

303,216

294,253

278,808

Total non-interest bearing deposits

2,352,140

2,373,261

2,372,545

2,395,382

2,437,322

Interest-bearing deposits:

Checking

2,306,810

2,214,192

2,096,340

2,103,184

2,152,646

Savings

6,031,015

5,882,730

5,859,147

5,789,188

5,608,824

Money market

748,016

662,493

662,024

650,598

648,862

Subtotal

9,085,841

8,759,415

8,617,511

8,542,970

8,410,332

Certificates of deposit

1,608,653

1,135,673

1,112,735

1,114,934

1,092,368

Total interest-bearing deposits

10,694,494

9,895,088

9,730,246

9,657,904

9,502,700

Total deposits

13,046,634

12,268,349

12,102,791

12,053,286

11,940,022

Borrowings:

Short-term borrowings

705,888

436,171

37,081

43,073

35,227

Long-term borrowings

1,986,182

3,817,165

4,387,036

4,403,724

4,513,301

Total borrowings

2,692,070

4,253,336

4,424,117

4,446,797

4,548,528

Accrued expenses and other liabilities

335,113

577,142

538,148

672,944

556,641

Total liabilities

16,073,817

17,098,827

17,065,056

17,173,027

17,045,191

Equity:

Preferred stock

10,993

Common stock

1,625

1,617

1,602

1,598

1,594

Additional paid-in capital

738,089

727,596

711,914

705,366

698,683

Retained earnings, subject to certain restrictions

846,349

1,052,632

1,121,866

1,105,322

1,081,101

Accumulated other comprehensive income (loss)

11,601

46,029

48,618

34,073

(8,819)

Treasury stock at cost and other

(45,499)

(42,499)

(33,032)

(33,008)

(33,036)

Total TCF Financial Corp. stockholders equity

1,563,158

1,785,375

1,850,968

1,813,351

1,739,523

Non-controlling interest in subsidiaries

17,843

13,506

4,422

6,856

11,617

Total equity

1,581,001

1,798,881

1,855,390

1,820,207

1,751,140

Total liabilities and equity

$ 17,654,818

$ 18,897,708

$ 18,920,446

$ 18,993,234

$ 18,796,331

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY YIELDS AND RATES^{(1) (2)}

(Unaudited)

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

2012

2011

ASSETS

Investments and other

2.48

1.29

.84

.83

1.06

U.S. Government sponsored entities:

Mortgage-backed securities, fixed-rate

3.17

3.66

3.79

3.86

3.92

U.S. Treasury securities

.04

.06

Other securities

4.14

5.24

3.36

4.68

5.68

Total securities available for sale⁽³⁾

3.17

3.66

3.79

3.84

3.69

Loans and leases held for sale

8.80

3.08

10.78

Loans and leases:

Consumer real estate:

Fixed-rate

5.84

5.99

6.04

6.06

6.08

Variable-rate

5.00

5.03

5.09

5.11

5.15

Total consumer real estate

5.54

5.65

5.71

5.73

5.77

Commercial:

Fixed- and adjustable-rate

5.49

5.61

5.68

5.72

5.78

Variable-rate

3.99

4.20

4.28

4.33

4.32

Total commercial

5.16

5.32

5.40

5.44

5.49

Leasing and equipment finance

5.48

5.63

5.88

6.01

6.02

Inventory finance

6.07

6.58

7.12

7.28

7.11

Auto finance

6.89

7.44

3.30

Other

7.66

8.42

8.91

8.44

9.01

Total loans and leases

5.52

5.65

5.75

5.81

5.85

Total interest-earning assets

5.34

5.24

5.20

5.28

5.38

LIABILITIES

Interest-bearing deposits:

Checking

.15

.16

.15

.20

.23

Savings

.34

.37

.42

.54

.52

Money market

.39

.37

.42

.45

Subtotal

.30

.32

.35

.45

.44

Certificates of deposit

.86

.75

.79

.82

Total interest-bearing deposits

.38

.37

.40

.49

.48

Total deposits

.31

.30

.32

.39

.38

Borrowings:

Short-term borrowings

.30

.29

.24

Long-term borrowings

1.87

4.00

4.26

4.28

4.33

Total borrowings

1.46

3.62

4.23

4.24

4.29

Total interest-bearing liabilities

.60

1.35

1.59

1.67

1.72

Net interest margin

4.86

4.14

3.92

3.96

4.02

(1) Annualized.

(2) Yields are presented on a fully tax equivalent basis.

(3) Average yields of securities available for sale are based upon the historical amortized cost and excludes equity securities.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES⁽¹⁾
(Dollars in thousands)
(Unaudited)
		At Jun. 30,			At Dec. 31,
		2012			2011
Computation of total equity to total assets:
Total equity	$	1,755,908		$	1,878,627
Total assets		17,870,597			18,979,388
Total equity to total assets		9.83	%		9.90	%

Computation of tangible realized common equity to tangible assets:
Total equity	$	1,755,908		$	1,878,627
Less: Non-controlling interest in subsidiaries		14,937			10,494
Total TCF Financial Corp. stockholders’ equity		1,740,971			1,868,133
Less:
Preferred stock		166,721			-
Goodwill		225,640			225,640
Other intangibles		9,516			7,134
Accumulated other comprehensive income		15,703			56,826
Tangible realized common equity	$	1,323,391		$	1,578,533

Total assets	$	17,870,597		$	18,979,388
Less:
Goodwill		225,640			225,640
Other intangibles		9,516			7,134
Tangible assets	$	17,635,441		$	18,746,614

Tangible realized common equity to tangible assets		7.50	%		8.42	%

		At Jun. 30,			At Dec. 31,
		2012			2011
Computation of tier 1 risk-based capital ratio:
Total tier 1 capital	$	1,508,176		$	1,706,926
Total risk-weighted assets		14,319,406			13,475,330
Total tier 1 risk-based capital ratio		10.53	%		12.67	%

Computation of tier 1 common capital ratio:
Total tier 1 capital	$	1,508,176		$	1,706,926
Less:
Preferred stock		166,721			-
Qualifying non-controlling interest in subsidiaries		14,937			10,494
Qualifying trust preferred securities		-			115,000
Total tier 1 common capital	$	1,326,518		$	1,581,432

Total tier 1 common capital ratio		9.26	%		11.74	%

(1) In contrast to GAAP-basis and regulatory capital-basis measures, tangible realized common equity excludes the effect of goodwill, other intangibles and accumulated other comprehensive income (loss) and the total tier 1 common capital ratio excludes the effect of qualifying trust preferred securities and qualifying non-controlling interest in subsidiaries. Management reviews these ratios as ongoing measures and has included this information because of current interest in the industry. The methodology for calculating these ratios may vary between companies.

###

TCF FINANCIAL CORP - FORM 8-K - EX-99.1 - PRESS RELEASE EXHIBIT 99.1 - July 19, 2012

Attached files

Exhibit 99.1

NEWS RELEASE

CONTACT: Jason Korstange

SECOND QUARTER HIGHLIGHTS

TCF FINANCIAL CORP Reports